Online video contests have potential for huge marketing benefits
Author: Bill Laforme
October 11, 2009

One of the latest trends in small business marketing is online video contests, which encourage brand loyalty and consumer engagement while riding on consumer-generated and viral marketing trends. But at price tags of approximately $10,000 to $250,000 more, is it worth it for small businesses?

The answer is maybe, according to Nate Elliott, principal analyst at Forrester Research.

Though it may seem as if online video contests generate a lot of press - with recently publicized contests including ones from Nike, Coca-Cola and Sony - not all contests do. They have to be executed correctly, Elliot wrote on the Forrester blog.

He urges small business owners embarking on an online video campaign to remember the "three Ps" - choosing the right premise, offering the right prize, and picking the right promotional strategy.

If not, the high price tag, not to mention the coordination required of many departments and vendors, will cause more time and money than it is worth, he said.

Online video campaigns done successfully, however, have the potential for huge marketing benefits, such as allowing businesses to hear feedback directly from consumers, producing viral marketing effects, and giving businesses access to "cheap, original content."

One company, Elliot noted, found that its online video contest generated as much publicity as the company's PR firm did.

Small businesses that do not have the resources - or do not want the risk - of investing in the online video trend are not out of options, as a recent report from ZenithOptimedia found that traditional marketing, such as custom printing and print ads, will still be widely used in the future - magazine advertising spending is expected to reach $46 billion by 2011, while newspaper spending will reach $101 billion.